Checking Our Brains at the Door and Overpaying for Financial Assets

Pleased to be quoted in Cliff Goldstein’s June 25, 2014 article in the Wall Street Journal’s MarketWatch:

However, some investment tactics apply to everyone, according toLarry McClanahan, a portfolio managerbased in Portland, Oregon. McClanahan says an overheated market is like an overvalued vehicle.

When asset classes are very overpriced, I dial back the risk of exposure for clients of all ages," he says. "Whether you're 32 or 62, you wouldn't pay $38,000 for a Toyota Camry that's only worth $28,000 just because you have a 'long enough time horizon.' So then why do we check our brains at the door when it comes to overpaying for financial assets? Valuation is the trump card.